What are current final pensionable earnings?

Bluebird09

I'm using the Civil Service Pension portal to calculate early retirement and notice an extra box has appeared on the modeller, which when clicked increases my pension by £3k pa , and my lump sum by £10k. (See below). I'd appreciate if someone could explain what this means please, and which amount will I receive?   

 

Phoenix72

Ignore that box and do not tick it. It's a known problem that it incorrectly inflates your results. I don't kniw why the don't remove it but bizzarely it doesnt appear for everyone.

Bluebird09

Thanks, I've never noticed it before myself. Very confusing! 

hugheskevi

Current pensionable earnings are what you would expect - your salary, plus any other pensionable income such as pensionable allowances. This will change, typically after a pay increase, in which case the following month would show your new pensionable earnings.

Your current final pensionable earnings are based on the final salary definition under scheme rules. These are different final pensionable earnings calculations for classic and classic plus/premium (classic plus and premium are the same).

The most generous Final pensionable earnings are the classic plus/premium rules, which give the highest of:

• Last 12 months of pensionable earnings
• Best of inflation-adjusted pensionable earnings from any of the last 4 complete scheme years (1 April - 31 March)
• Best of average of any 3 year inflation-adjusted pensionable earning period from any of the last 13 complete scheme years (1 April - 31 March)

It is very common that final pensionable earnings are higher than pensionable earnings due to pay freeze/pause/restraint.

Your pension is calculated using final pensionable earnings.

Whether there are issues with how the calculator calculates and uses the figures, I do not know.

Phoenix72

hugheskevi said:

Whether there are issues with how the calculator calculates and uses the figures, I do not know.

Major issues with it and MyCSP know it but for whatever reason cannot/will not remove it from the modeller.

Bluebird09

Thanks Hugheseki, much appreciated. 

german_keeper

hugheskevi said:

Current pensionable earnings are what you would expect - your salary, plus any other pensionable income such as pensionable allowances. This will change, typically after a pay increase, in which case the following month would show your new pensionable earnings.

Your current final pensionable earnings are based on the final salary definition under scheme rules. These are different final pensionable earnings calculations for classic and classic plus/premium (classic plus and premium are the same).

The most generous Final pensionable earnings are the classic plus/premium rules, which give the highest of:

• Last 12 months of pensionable earnings
• Best of inflation-adjusted pensionable earnings from any of the last 4 complete scheme years (1 April - 31 March)
• Best of average of any 3 year inflation-adjusted pensionable earning period from any of the last 13 complete scheme years (1 April - 31 March)

It is very common that final pensionable earnings are higher than pensionable earnings due to pay freeze/pause/restraint.

Your pension is calculated using final pensionable earnings.

Whether there are issues with how the calculator calculates and uses the figures, I do not know.

Just when I was beginning to make some progress on working through my trauma!!